On The Brink with Castle Island Luke Xie (SatLayer) on The Next Generation of Bitcoin Yield (EP.657)
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Aug 18, 2025 Luke Xie, cofounder of SatLayer and an expert in Bitcoin and DeFi, dives into the intriguing landscape of Bitcoin's financial evolution. He discusses how Bitcoin's unique role in decentralized finance is growing, addressing its comparative downside in total value locked against other assets. Luke explores innovative yield strategies and the potential for Bitcoin as a global reserve currency. Additionally, he examines the cultural factors shaping Bitcoin adoption and the future of instant payments, revealing the exciting possibilities of Bitcoin-backed financial products.
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Bitcoin DeFi Is Early But Large
- Bitcoin DeFi is in early innings and can mirror Ethereum's DeFi growth.
- Bitcoin will likely become the dominant asset across L1 DeFi ecosystems.
Treasury Firms Need On-Chain Yield
- Bitcoin treasury companies are saturating and will seek differentiation via on-chain yield.
- Generating yield on accumulated Bitcoin becomes a growth lever for treasury firms.
Principal Protection Trumps High Yield
- Bitcoin holders tolerate lower yields when principal risk is minimized.
- Products with principal protection and Bitcoin-backed insurance will attract large holders.